Have you ever heard of The Slight Edge?
It’s a book, but more importantly, it’s a concept. A very successful concept, I might add.
I’m not going to take all day to explain what it is…
The Slight Edge is the idea of making small changes and small progress over a long period of time, which leads to extraordinary results.
Now, there’s more to it than that, but that’s the “nutshell” explanation.
Let me explain exactly how it works, how it’s applied and how it can make you rich…
The Way of the Slight Edge
Have you ever tried to start a new habit?
And have you ever not followed through with it? We all have.
Look back and think about where you would be today if you would have followed through…
- Would you be 50 pounds lighter?
- Would you have read 100 books?
- Would you be much closer to retirement?
Now really think back. I’m talking years back. If you would have stuck with it, think about where you would be.
OK, the guilt trip is officially over.
That’s enough talk about what you didn’t do. Let’s talk about what you can still do.
If you failed, it’s most likely because you started wrong. You probably started by doing too much, too soon.
The Slight Edge is a way to look back over the last few years and realize your monsterous accomplishments. And then realize that it was actually easy. How was it easy? Because you applied “the compound effect”.
The Compound Effect
The Slight Edge is about small habits. Daily habits. Habits that almost seem too small…but they add up.
If you think something is too small, remember these 3 things:
- It’s better than doing nothing
- It’s better than starting too big and giving up
- When you look at the compound effect, you’ll be amazed
So, what exactly is the compound effect? It’s like compound interest.
In the short term, it’s small. Over the long haul, it compounds like a snowball turning into an avalanche.
Again, look back and think about where you would be with a habit now, if you started it this way a year ago. Or, more positively, think about where you will be in the future.
Now let’s talk about where your finances can be in the future…
Compound interest. The 8th wonder of the world.
Now we’re shifting from metaphorical to actual. I’m talking about cold hard cash. Actual compound interest.
The most basic application of The Slight Edge is in your finances. You contribute a small amount, consistently, for a long time and you will be rich.
Let’s see just how rich you could be…
I’m not going to use the typical “10% average return of the stock market”. I could make a great argument that 9% is actually realistic; but just to be conservative, let’s use a rounded 8%…
- 30 Years: $73,407.52
- 40 Years: $167,868.62
- 50 Years: $371,803.06
- 60 Years: $812,082.22
- 70 Years: $1,762,611.89
- 30 Years: $146,815.04
- 40 Years: $335,737.25
- 50 Years: $743,606.12
- 60 Years: $1,624,164.43
- 70 Years: $3,525,223.78
- 30 Years: $367,037.60
- 40 Years: $839,343.12
- 50 Years: $1,859,015.31
- 60 Years: $4,060,411.08
- 70 Years: $8,813,059.44
- 30 Years: $734,075.21
- 40 Years: $1,678,686.24
- 50 Years: $3,718,030.61
- 60 Years: $8,120,822.16
- 70 Years: $17,626,118.88
70 years may seem like a long time, because it is a long time. But when we’re talking about leaving a legacy (more specifically, an inheritance), 70 years is definitely a reasonable time-frame.
Would it be possible for you to save more than $500/month? The answer is yes, but it depends on how much you’re willing to sacrifice (or how hard you’re willing to work).
How The Slight Edge Can Make You Unstoppable
If The Slight Edge can do that for your finances, what do you think it can do for the rest of your life?
You can implement this strategy for any goal. The thing is, you can accomplish anything if you start small enough and stay consistent.
If you read for 15 minutes a day, every day, that equates to about 1,000,000 words in a year.
Back to your finances. What if you were to read a good finance book for 15 minutes a day? 1,000,000 words about finances each year?
As cliche as it sounds, the possibilities are literally endless.
Give yourself a slight edge over the rest (OK, I admit, that was corny).
Seriously though, it doesn’t take much. Think big, smart small.
If don’t have The Slight Edge, I would strongly recommend getting it. It’s just a few bucks on Amazon and the content is priceless.
Have you ever heard of The Slight Edge?
What are some more ways you could apply it?
Share in the comments!